In recent years, Vietnam has become a regional leader in renewable energy development, particularly in solar and wind power. This growth was largely driven by the adoption of the Feed-In Tariff (FiT), a fixed, preferential pricing scheme aimed at encouraging private investment in clean energy. However, since 2021, Vietnam has discontinued the FIT for new projects and shifted to alternative electricity trading mechanisms. This paper examines the legal consequences of this policy change, identifies limitations in the current Vietnam’s framework, and assesses the potential risk of investment disputes under the protection mechanisms provided by the European Union - Vietnam Free Trade Agreement (EVFTA).